Samsung SDI Posts $327 Million Q2 Profit on Strong Battery Sales

Samsung SDI Co., a major South Korean battery manufacturer, reported a significant turnaround in its financials for the second quarter. The company's net profit rose to 471.6 billion won ($327 million) from a net loss of 166.7 billion won in the same period last year.

The improvement was attributed to increased shipments of electric vehicle (EV) batteries to Europe and stronger demand for high-voltage batteries used in power tools, uninterruptible power supply (UPS) systems, and battery backup units (BBUs). The company also benefited from a sizeable tax credit under the Advanced Manufacturing Production Credit (AMPC) program of the U.S. Inflation Reduction Act.

Samsung SDI's sales rose 18.5 percent to 3.76 trillion won in the second quarter, while its operating profit swung to 203.8 billion won from an operating loss of 397.8 billion won a year earlier. For the first six months of the year, the company posted a net profit of 527.7 billion won compared with a net loss of 382.7 billion won in the same period last year.

The company expects its earnings recovery to continue in the second half, driven by growing demand for utility-scale energy storage systems and UPS systems. Samsung SDI plans to expand its supplies for mass-market EV models in Europe while pursuing new business opportunities, including LFP battery projects.